IPO of National Feed, Mudaraba Subordinate Bond of SIBL approved

The securities regulator Tuesday approved the IPO (initial public offering) proposal of National Feed Mill and Tk 3.0 billion Mudaraba Subordinate Bond of the Social Islami Bank Limited (SIBL), officials said.
The approvals came at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
As per the regulatory approval, National Feed Mill will offload 18 million ordinary shares under the fixed price method at an offer price of ten taka each.
The company will raise a fund worth Tk 180 million for repayment of bank loan and expansion of business along with boosting working capital.
As per the audited financial statement for the year ended on June 30, 2013 the earnings per share (EPS) and net asset value (NAV) of the National Feed Mill are Tk 1.85 and Tk 14.55 respectively.
The ICB Capital Management has been appointed the manager to the National Feed Mill.
The SIBL will issue the Mudaraba Subordinate Bond worth Tk 3.0 billion to boost its capital under the Tier 2.
Banks, Insurances, Financial Institutions, Corporate Houses and Individual Investors will be allowed to purchase the SIBL's bond whose tenure will be six years from the date of issuance.
The face value of the SIBL's bond is of Tk 0.5 million and the market lot for individuals consists of one whereas the market lot for institutional investors consists of twenty.
The annual profits will be provided at the rate of 120 per cent of the Mudaraba Term Deposit.
At Tuesday's meeting, the securities regulator has imposed a penalty of Tk 0.5 million on AB Securities for breaching securities rules.
Unique Share Management will also have to pay a penalty of Tk 0.5 million for breaching securities rules.